News

Natural Gas Prices Slide As Weather Forecasts Warm - The Wall Street Journal

The Wall Street Journal · last updated November 6, 2023 – 12:12 PM

Natural Gas Prices Slide As Weather Forecasts Warm - WSJ

Updated Nov. 6, 2023 3:17 pm ET

1512 ET – Natural gas futures lose 7%, their largest one-day percentage decline since May, as weather forecasts point to temperatures warm enough to keep US homes from cranking up their gas-powered heaters. There’s some expectation that last week’s cold might have shrunk US inventories, but the data won’t be available until next week, as the EIA reporting system is updated. When the data comes out, NatGasWeather.com expects an inventory surplus of 205 billion cubic feet “to drop to near +165 Bcf off last week’s cold shot, then increase to over +225 Bcf on coming warmth.” The December contract settles at $3.264/mmBtu. ( paulo.trevisani@wsj.com; @ptrevisani)

Natural Gas Futures Deepen Loss

1144 ET – Natural gas for December delivery falls more than 7%, which would be its largest one-day decline in several months, and trades at $3.261/mmBtu. “A much warmer forecast in the 8-14 day has turned the past two weeks buyers into sellers,” BOK’s Dennis Kissler says in a report. “While the fundamentals longer term still favor the bullish side, we will need to see some freezing temps back into the forecast very soon if we’re going to lift prices substantially.” This week there will be no US inventories report, but Kissler says expectations are for natural gas production “to remain at record levels.” ( paulo.trevisani@wsj.com; @ptrevisani)

Continue reading your article with

a WSJ subscription
Subscribe Now

Already a subscriber? Sign In

Natural Gas Prices Slide As Weather Forecasts Warm - The Wall Street Journal

here today, more tomorrow